European Commission fines 16 car manufacturers over vehicle recycling cartel

The European Commission and UK competition authorities have fined 15 car manufacturers, including BMW, Ford, and Volkswagen, a total of over €458 million and £78 million for engaging in an illegal cartel concerning end-of-life vehicle recycling from 2002 to 2017. The manufacturers colluded to avoid paying vehicle dismantlers for recycling services and agreed not to disclose how much of an end-of-life vehicle could be recycled, thereby suppressing consumer awareness and demand for environmentally friendly practices. Mercedes-Benz escaped penalties by reporting the cartel, which was facilitated by the European Automobile Manufacturers Association (ACEA). The fines reflect a commitment to uphold competition laws and promote transparency in recycling practices. The investigation revealed that the collusion prevented consumers from making informed choices regarding the recyclability of vehicles. European competition chief Teresa Ribera emphasized that such cartels will not be tolerated as they undermine competition and environmental accountability.